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Sandvik acquires Varel International Energy Services

Staff writer ▼ | January 8, 2014
Sandvik has reached an agreement to acquire Varel International Energy Services Inc. (Varel). The acquisition price amounts to approximately $740 million.
Varel International Energy Services
Varel International Energy ServicesSandvik has reached an agreement to acquire Varel International Energy Services Inc. (Varel). The acquisition price amounts to approximately $740 million.


The closing of the acquisition is subject to standard regulatory approvals and certain environmental due dilligence.

Varel is a global supplier of drilling solutions focusing on drill bits, downhole products for well construction and well completion. The key customer segment is in the Oil and Gas sector, with some exposure to the mining and construction industries. The manufacturing sites are located in Houston (USA), Matamoros (Mexico), Aberdeen (Scotland), Tarbes (France), and Kurgan (Russia). The head office is based in Carrollton, Texas, USA.

Revenues in 2013 were approximately 340 million USD and number of employees about 1,300. The acquisition is expected to be slightly accretive to earnings per share already in the first year. Varel will form a new product area within the business area Sandvik Venture.


 

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